The benchmarking train was first carried out in 2019 with respect to the place in 2017.
This follow-on benchmarking train, overlaying the identical international locations and parameters used within the earlier examine, was undertaken with respect to the place in 2020, the RBI stated.
“India has made vital progress and moved to a management place in massive worth cost programs and quick cost programs, which contributed to speedy development in digital funds,” the report stated.
Because the final train, India has demonstrated enchancment in digital cost choices accessible for invoice funds, ticketing programs for public transportation, accessible channels for cross-border remittances and decline in cheque utilization.
“The train highlights that there’s scope for enchancment in acceptance infrastructure — ATMs and PoS terminals. The Funds Infrastructure Improvement Fund (PIDF) scheme was operationalised in 2021 to boost the acceptance infrastructure and bridge the hole,” the report stated.
It additional stated the decline in India’s score in some parameters involving foreign money in circulation is defined by the elevated demand for money as a retailer of worth in the course of the Covid-19 pandemic associated lockdown and the slowdown in financial development throughout 2020.
The RBI careworn that the learnings from the benchmarking train are anticipated to facilitate additional enhancements within the funds panorama in India.
Regulation continues to be sturdy in India with many proactive buyer centric initiatives being taken.
Different parameters on which India has achieved a robust or management place embrace e-money and buyer safety.
The report famous that India’s home card community — RuPay — dominates the debit card section so far as card issuance is anxious. Nonetheless, RuPay is lagging within the bank card section with beneath 3 per cent share of whole playing cards issued.
In 2020, the share of card funds in whole cost programs transactions was the second lowest in India (14.7 per cent), with solely Indonesia witnessing a decrease share (7.2 per cent).
It additionally stated although India has the third largest variety of ATMs deployed, it continues to fare poorly with regard to individuals served per ATM because of its sizeable inhabitants. A single ATM catering to over 5,800 individuals as at finish 2020.
Nonetheless, this is probably not a priority as money withdrawals in India are additionally facilitated by way of different channels similar to PoS terminals and micro ATMs utilizing Aadhaar enabled cost programs (AePS), the RBI added.
On method ahead, the report stated with international give attention to enhancing cross-border cost preparations, it’s important that India explores additional actions on this enviornment, which might additional its relative place and take away frictions in such transactions.
These measures may embrace, constructing on the UPI-PayNow interface and exploring avenues for interlinking UPI with quick cost programs in different jurisdictions, and enhancing/reviewing the prescribed limits for inward remittances utilizing the Cash Switch Service Scheme (MTSS) to enhance buyer comfort.
It additionally careworn that internationalisation of Indian rupee will facilitate higher diploma of integration of Indian economic system with remainder of the world, when it comes to international commerce and worldwide capital flows.
